乌龟海岸 (TBCH) 2026年第三季度业绩电话会：营收增长5.3%，重申业绩指引

核心要点

• 乌龟海岸（Turtle Beach Corporation，NASDAQ: TBCH）公布2026年第三季度营收为8470万美元，同比增长5.3%（上年同期为8050万美元），主要受无线耳机、Stealth Pro II以及任天堂Switch 2系列产品的提振。
• 毛利率从37.4%降至34.9%，反映出产品结构变化以及促销、关税和物流成本上升的影响。调整后EBITDA从1100万美元降至810万美元。
• 净利润从170万美元（即摊薄后每股收益0.08美元）增至440万美元（即摊薄后每股收益0.24美元）。同比改善主要得益于一笔保险赔偿款以及上年同期存在债务偿还损失。
• 管理层重申了2026年全年指引，预计营收为3.35亿美元至3.55亿美元，调整后EBITDA为4400万美元至4800万美元。实现这一展望需要第四季度做出重大贡献。
• 零售商将更多假日季备货采购推迟至第四季度。管理层表示，随着消费者终端销售好转（尤其是10月下半月），截至10月的订单同比呈现加速态势。
• 根据Circana的数据，乌龟海岸本季度在美国游戏耳机和第三方游戏手柄领域均名列第一。第三季度，其在美国市场的任天堂手柄销售额同比增长超过70%。

核心财务数据

业务与运营表现

营收增长主要由无线耳机及较新产品（包括Stealth Pro II和任天堂Switch 2系列产品）带动。零售商在第三季度主要根据正常季节性需求采购，并未进行大规模的假日季备货。

管理层表示，终端销售在10月下半月走强。公司将这种加速势头归因于耳机和手柄的良好势头，以及围绕重磅游戏发布的用户参与热度。据管理层介绍，10月23日《使命召唤：现代战争4》（Call of Duty: Modern Warfare 4）发售后带来的销量提振强于公司往常水平，且大幅高于上年同期游戏发售时的拉动效果。

根据Circana的数据，乌龟海岸第三季度在美国游戏耳机和第三方游戏手柄领域均位居第一。这标志着其自收购PDP以来，在第三方手柄领域首次获得季度第一的排名。第三季度，其在美国市场的任天堂手柄销售额增长超过70%，且9月份增幅超过100%。

该公司于8月推出了适用于任天堂Switch 2的Stealth 500、新款Rematch无线手柄和PlayTrek旅行收纳包；VelocityOne HOTAS飞行模拟控制器和模拟支架（Sim Mount）于9月开始发货；高端Stealth Ultra II手柄仍计划于第四季度推出。

耳机和手柄约占营收的90%。管理层还报告称，鼠标、键盘和模拟类产品同比均实现增长，尽管这些品类对总营收的影响较小。

从地域来看，美国市场依然强劲，今年迄今耳机和手柄销售额同比均有增长。管理层指出，英国和欧洲市场相对疲软且落后于美国，但正在改善。亚洲市场对营收的贡献仅处于中低个位数百分比。

管理层指引

乌龟海岸重申其2026年全年展望：

• 营收为3.35亿美元至3.55亿美元。
• 调整后EBITDA为4400万美元至4800万美元。
• 全年毛利率处于30%中高段区间。

管理层预计，由于季节性营收增加以及附加值更高的新品贡献加大，第四季度毛利率将有所改善。公司表示，全年展望取决于零售商在假日季的进一步补货、重磅游戏发布带来的更强劲消费需求、新品贡献以及毛利率的提升。

管理层预计年底渠道库存价值将与2025年底基本相当。管理层还预计假日季销售和客户回款将释放营运资金，并提供额外的资产负债表灵活性。

在第二季度回购约2500万美元股票后，该公司在第三季度未进行股票回购。其回购授权额度目前还剩3100万美元，并预计在假日季过后，视营运资金和业务投资需求，可能具备进一步回购的潜力。

风险与关注事项

• 全年展望需要第四季度做出可观的营收贡献，这使得零售商订单的时间节点与规模尤为重要。
• 假日季的终端销售表现以及围绕重磅游戏发布的消费者参与度，仍是达成指引的关键变量。
• 产品结构、促销、关税、运费、燃油及其他物流费用对第三季度毛利率构成压力，且仍是关键的成本影响因素。
• 随着公司为假日季备货，存货升至7980万美元。现金生成能力部分取决于将存货转化为销售以及按时收回客户账款。
• 尽管出现好转迹象，但英国和欧洲市场依然落后于美国。

分析师问答要点

分析师重点关注了达成年度指引所需异乎寻常庞大的第四季度贡献。管理层指出，此前业绩高峰期的历史对比是在收购PDP之前。在指引中值水平下，所需的第四季度营收将比2024年第四季度高出约11%，管理层表示，鉴于当前的终端销售趋势以及重磅游戏发售时间表，这一目标看似可以达成。

在库存方面，管理层表示，乌龟海岸拥有充足的备货以达成其假日季指引。零售商在9月份并未如预期那样提早备货，但随着终端销售好转，补货订单在10月份有所加速。

管理层表示，渠道库存能够支撑当前需求，零售商也正在通过追加订单来应对更强劲的终端销售表现。公司预计，若消费需求持续，这种补货模式将得以延续。

在盈利能力方面，管理层预计第四季度假日促销环境将更为常态化。管理层表示第四季度毛利率有望与上年同期相当，同时重申了全年毛利率处于30%中高段区间的目标。

业绩电话会完整文字实录

完整财报电话会议逐字稿

管理层陈述

Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Turtle Beach Corporation Third Quarter 2026 Conference Call. [Operator Instructions] As a reminder, the conference is being recorded.

I would like to turn the call over to Megan Larson, Vice President with ICR. Megan, you may begin.

Unknown Attendee

Thank you, operator. On today's call, we'll be referring to the press release filed this afternoon that details the company's third quarter 2026 results, which is available on the news page of the company's Investor Relations website, corp.turtlebeach.com, where you'll also find the latest earnings presentation that supplements the information discussed on today's call. Finally, a recording of the call will be available on the Events and Presentations section of the company's Investor Relations website later today.

Please be aware that some of the comments made during this call may include forward-looking statements within the meaning of the federal securities laws. Statements about the company's beliefs and expectations containing words such as may, will, could, believe, expect, anticipate and similar expressions constitute forward-looking statements. These statements involve risks and uncertainties regarding the company's operations and future results that could cause Turtle Beach Corporation's results to differ materially from management's current expectations.

While the company believes that its expectations are based upon reasonable assumptions, numerous factors may affect actual results and may cause results to differ materially. The company encourages you to review the safe harbor statements and risk factors contained in today's press release and in its filings with the Securities and Exchange Commission, including, without limitation, its annual report on Form 10-K and other periodic reports, which identify specific risk factors that may also cause actual results or events to differ materially from those described in our forward-looking statements.

The company does not undertake to publicly update or revise any forward-looking statements after this conference call.

The company also notes on this call that it will be discussing non-GAAP financial information. The company is providing that information as a supplement to information prepared in accordance with the accounting principles generally accepted in the United States or GAAP. You can find a reconciliation of these metrics to the company's reported GAAP results in the reconciliation tables provided in today's earnings release and presentation.

Hosting the call today are Cris Keirn, Chief Executive Officer; and Andrew Clipsham, Interim Chief Financial Officer. With that, I'll turn the call over to Cris.

Cristopher Keirn

Thanks, Megan. Good afternoon, everyone, and thank you for joining our third quarter 2026 earnings call. During the third quarter, we advanced our strategic priorities through new product introductions, expanded brand initiatives and close coordination with retail partners ahead of the holiday season. Revenue returned to year-over-year growth at $84.7 million, up 5.3%, with gross margin of 34.9% and adjusted EBITDA of $8.1 million. These results reflect progress across our broader product portfolio, and our focus now is on delivering through the fourth quarter.

Retail inventory remains an important factor in the timing of our revenue. We had anticipated the potential for a more substantial holiday inventory load-in during the third quarter. Instead, retailers purchased largely to normal seasonal requirements with more of their holiday load-in shifting into Q4. We believe this reflects a shorter ordering window, consistent with recent purchasing patterns rather than a change in underlying consumer demand.

We have seen encouraging early signs of holiday replenishment with customer orders accelerating year-over-year through October. We are also seeing improving consumer sell-through trends, particularly in the second half of October. As discussed on prior calls, we continue to expect year-end channel inventory to be broadly comparable in value with the end of 2025. We are also seeing encouraging signs in the broader gaming market following a slower first half.

According to Circana, U.S. accessory spending increased 10% in September with headset spending up by double digits and improving trends across both headsets and third-party controllers. Hardware spending rose 12%, including a 22% increase in PlayStation 5 unit sales. These recent trends show improving engagement ahead of the holiday season, and we also believe an overdue accessory replacement cycle could provide additional support as that engagement builds.

The industry's major game release calendar remains an important catalyst. Following the well-received launch of Call of Duty: Modern Warfare 4 on October 23, we are preparing for other eagerly anticipated releases, including The Legend of Zelda: Ocarina of Time for Nintendo Switch 2 today and the Grand Theft Auto VI launch coming up on November 19, exclusive to consoles.

Historically, major releases have supported increases in accessory demand, both around the launch date and beyond. We believe the anticipation surrounding this year's major releases is already contributing to the recent acceleration of our U.S. accessory sell-through. With that in mind, we remain highly focused on ensuring that our products are available and retail execution is seamless. We see an opportunity for accessory upgrades and replacement demand to extend beyond the holiday quarter and into 2027 rather than a temporary lift around any single launch event.

Ahead of this important holiday season, our competitive position has continued to strengthen. According to Circana, Turtle Beach ranked #1 in both U.S. gaming headsets and third-party gaming controllers during the quarter. This was our first #1 quarterly ranking in third-party gaming controllers since the PDP acquisition. The achievement reflects our established leadership in gaming audio and the progress we've made in controllers by bringing together our expanded portfolio, product innovation and capabilities following that key acquisition.

Our Nintendo controller business has also been particularly strong. Circana data indicates our year-over-year U.S. dollar sales growth of more than 70% in the quarter and more than 100% in September with a #1 third-party Nintendo controller share position in Q3.

Our product introductions have supported that progress across categories. Stealth Pro II continued the premium tier headset share gains discussed last quarter, while the Command Series expanded our PC offering with keyboards in the second quarter and mice in the third quarter.

In August, we launched Stealth 500 for Nintendo Switch 2, the first officially licensed wireless gaming headset for that important platform, along new Rematch Wireless Controllers and PlayTrek Travel Cases. September brought the start of shipments for our VelocityOne HOTAS flight simulation controller and Sim Mount. We now have introduced products across each of our major categories this year with significantly more launches than in 2025.

Additional new products, including our premium Stealth Ultra II controller are on track to launch in Q4. Our brand initiatives are helping these launches reach a broader audience, and we are also extending the reach of our portfolio through new partnerships and licensing agreements.

This year, in collaboration with Epic Games, we introduced the Victrix Pro BFG Reloaded Fortnite Drift Controller for multiple platforms and the Rematch Wireless Fortnite Kevin the Cube controller for Nintendo Switch 2. We've also entered into a licensing agreement with Disney for planned Star Wars accessories as well as Marvel products.

Together, these exciting initiatives unlock opportunities for us to partner with iconic franchises in our product portfolio, deepen connections with gaming communities and expand our reach with new audiences.

Turning to capital allocation. We did not repurchase shares in the third quarter, following approximately $25 million of repurchases in the second quarter. As discussed in August, we prioritized working capital to support inventory requirements ahead of the holiday season. As that inventory converts to sales and cash collections, we anticipate having the balance sheet capacity for additional share repurchases following the holiday season while continuing to balance capital returns with the needs of the business and other opportunities to create long-term shareholder value. Approximately $31 million remains under our current authorization.

Taking into account early fourth quarter ordering trends and our product and inventory plans, we are reaffirming our full year 2026 guidance. This outlook calls for a substantial fourth quarter contribution, supported by anticipated retailer holiday replenishment, contributions from new products and increased gamer engagement around major releases.

With that, I'll turn the call over to Andrew for additional details on our third quarter financials.

Andrew Clipsham

Thank you, Cris, and good afternoon, everyone. Third quarter revenue was $84.7 million, up 5.3% from $80.5 million a year ago. Strong performance of wireless headsets and new products, including our flagship Stealth Pro II model and Nintendo Switch 2 range have supported that growth. Retailer purchases remained broadly in line with normal seasonal requirements during the third quarter without a material channel inventory build. As discussed on our last call, holiday loading can shift revenue between the third and fourth quarters. And this year, more of that activity moved into the fourth quarter.

Gross margin was 34.9% compared with 37.4% a year ago. The decline principally reflects product mix and higher promotional tariff and logistic costs, including freight and fuel. We continue to proactively manage sourcing, pricing and product mix to minimize these impacts, and our full year gross margin outlook reflects these initiatives as well as the current cost environment.

For the fourth quarter, we expect gross margin to improve, supported by higher seasonal revenue and a greater contribution from newer high-value products. We continue to expect full year gross margin within our targeted mid- to high 30% range.

Operating expenses were $23.7 million or 28% of revenue compared with $24.7 million or 31% of revenue a year ago. The decrease reflects approximately $1.1 million of insurance recoveries and lower general and administrative costs, partly offset by continued marketing investment in our products and brand.

Net income was $4.4 million compared with $1.7 million in the prior year quarter or $0.24 per diluted share compared with $0.08 per diluted share a year ago. The improvement is driven by $1.9 million of debt extinguishment in the prior year quarter, together with the current quarter insurance recovery. These factors are partially offset by higher supply chain costs and interest expense in the current year quarter.

Adjusted EBITDA was $8.1 million compared with $11 million a year ago. The year-over-year decrease primarily reflects lower gross margin and continued investment in marketing behind our expanded product portfolio and brand initiatives.

Turning to the balance sheet. At September 30, net debt was $71.7 million, consisting of $82.9 million of outstanding debt and $11.2 million of cash. Operating cash outflow for the quarter was negative $6.4 million compared with negative $15.2 million in the prior year period. The third quarter is typically a period of working capital investment as we build inventory for the holiday season.

Inventory at quarter end was approximately $79.8 million, an increase of approximately $23.2 million from the second quarter as we prepared for major game launches and the holiday season. We expect holiday sales and collections to release working capital and support additional balance sheet flexibility, subject to the timing of customer receipts.

We did not repurchase shares during the quarter as we prioritize cash for seasonal inventory requirements. Approximately 17.9 million shares were outstanding at September 30, with $31 million remaining under our share repurchase authorization.

As inventory converts to sales and collections, we anticipate capacity for additional repurchases following the holiday season while balancing capital returns with working capital needs and investment in the business.

Turning to guidance. We are reaffirming our full year 2026 outlook. Revenue is expected to be in the range of $335 million to $355 million, and adjusted EBITDA is expected to be between $44 million and $48 million. As discussed previously, we expected revenue to be weighted towards the second half of 2026, and our full year outlook requires a substantial fourth quarter contribution.

It assumes further retailer holiday replenishment, increasing consumer demand around major releases, including Grand Theft Auto VI, contributions from the new product portfolio and expected gross margin improvement. Early fourth quarter orders have been encouraging, but the timing and magnitude of retailer purchases, holiday sell-through and prevailing cost conditions remain important variables in delivering the outlook.

With that, I'll turn the call back to Cris.

Cristopher Keirn

Thanks, Andrew. As we enter the fourth quarter, our priorities remain clear: deliver through the holiday season, support our retail partners and maintain our unwavering focus on execution. With new products in market and major game releases ahead, we are ready to support increased gamer engagement and the accessory demand it generates. Our confidence is grounded in the breadth of the business, our leadership in gaming headsets and third-party controllers, an innovative portfolio spanning audio, controllers, PC and simulation, broader engagement with gamers through our brand initiatives and established retail and platform partnerships.

These capabilities, together with continued innovation, provide opportunities for growth beyond 2026, although we are not providing specific financial guidance for next year at this time. Our continued focus on brand building and product innovation is resonating with consumers.

Turtle Beach was recently recognized with 7 TechRadar Readers' Choice Awards, including Gaming Brand of the Year, along with honors across our headset, controller, keyboard and simulation categories. With winners selected entirely by consumers, these awards reinforce the strength of our expanding portfolio and the momentum behind the Turtle Beach brand.

I want to thank our amazing Turtle Beach team for its dedication and execution throughout a demanding year. I also thank our retail and industry partners for their collaboration and our shareholders for their continued support.

With that, operator, we can open the call for Q&A.

Operator

[Operator Instructions] Our first question today comes from Drew Crum of B. Riley Securities.

分析师问答

Andrew Crum

So Cris, I think you mentioned the improved sell-through trends for the business, particularly in the second half of October. Any early observations following the launch of Call of Duty? I know historically, that's been an important franchise for your console headset business. And any, again, early learnings or observations of how it compared to prior iterations or launches of COD? And then I have a follow-up.

Cristopher Keirn

Sure. Drew, thanks for the question. And looking at Call of Duty, the sell-through that we've seen in the second half of October has accelerated. Really, the last 2 weeks, we saw a bit of a step change from the first 2 weeks. And it's a result, I think, of what we've seen over the last couple of months, which is a building momentum, particularly in our 2 main categories of headsets and of controllers.

And so when you look at Call of Duty specifically, it's always a nice catalyst for our sell-through. What we are seeing, I would say, is heavier than what we would normally see with the Call of Duty launch. It's certainly much higher than last year on the lift that we saw from the last year's release of Call of Duty. And I think what you're seeing there is a combination of factors.

There is a building momentum as we get towards some of the launches here in Q4. Call of Duty is one of those. It's always a really strong launch for our business. Ocarina of Time today is another really great launch on the Switch 2 platform. And then, of course, coming up here on the 19th with GTA VI. So -- but specifically on your Call of Duty question, it has been a strong launch. If you look at the Metacritic reviews on that, it's also quite strong.

Andrew Crum

Got it. Okay. That's helpful. And then going back to the guidance, it would imply -- I think Andrew mentioned this in his preamble, a 4Q sales number that's exceptionally strong. I don't think the business has ever achieved a number if you assume the midpoint of your range, not even during the pandemic or the Fortnite year.

So can you dig in a little bit more to discuss the key swing factors to achieving the annual revenue target and just your overall confidence in delivering against these?

Cristopher Keirn

Sure. Yes, absolutely. The -- when you mentioned the Fortnite year and some of the pandemic numbers, remember, that was before acquisition of PDP. So we've had a significant addition with PDP now part of the business, and we've seen really great results from that combination. All credit to the team here, achieving that first party or first spot in the U.S. sell-through rankings here in Q3 is a first for us. We haven't been able to achieve that. So it's a good sign of where we're headed with that controller business.

So when you look at the year-over-year numbers, we do need to see a significant lift year-over-year from last year's numbers to achieve a Q4 that would deliver the guidance. We feel confident in that. When you look at the trends that we're seeing here in October and the sell-through trends that we've seen here over the last several weeks, it's all in support of that guidance number.

And as another point of reference for you, if you look back to 2024, so just a couple of years ago, we would need to achieve at the midpoint a Q4 that's roughly 11% higher than where we were 2 years ago. And when you think about the releases that are in the market now between Call of Duty and obviously, with GTA VI, an 11% growth number from a couple of years ago seems less daunting to us. So when you put all that in perspective, yes, we feel good about Q4 and the trends that we're seeing.

Operator

The next question comes from Sean McGowan of ROTH Capital Partners.

Sean McGowan

I want to follow up on Drew's questions from a different angle, and that is looking at the inventory level that you have on hand at the end of the third quarter relative to what the expected sales would be, that also seems pretty low relative to historical trends. And then along those same lines, wouldn't you have expected the retailers to want to take in product earlier just given expectations for GTA VI and wanted to get it a little bit ahead of normal?

Cristopher Keirn

Sean, thanks for the question. Yes. And to address that, a couple of things there. First, on the inventory, we feel good about our inventory levels now. If you recall, last year, we had purchased a significant amount of inventory ahead to try to get ahead of tariffs. That ended up being a good decision for us, but it did mean that we are carrying a much higher inventory level really than we needed at that time heading into Q4 last year.

So we have seen a reduction from last year, but we are seeing an increase, obviously, from where we ended last quarter as we've been building up on those key SKUs here getting ready for Q4. So just to be clear, we have all the inventory in place that we would need to hit our guidance numbers here in the holiday.

As far as expectations, you also asked about load-in from the retailers. We did anticipate that we might see them load-in a bit earlier in September, in particular. We really didn't see that. We saw them purchase to normal replenishment levels, which looking at the games coming up, we have seen an acceleration of those orders here in October, which is encouraging.

And as we've seen the sell-through increase, we believe that, that will then also lead to additional replenishment orders as retailers adjust to the higher levels that we're seeing. So yes, we would have expected it a little earlier, but there's still -- with what's in process now and the expected demand for the holiday, we're in good shape.

Sean McGowan

Okay. And then thinking of that shift, some revenue that you might have thought would be in the third quarter into the fourth. What does this do to your marketing expenditures and how that affects your reported results as well as the actual programs that you're executing at retail? Does it cause that to shift into the fourth quarter as well?

Cristopher Keirn

Sure. Some of it does. Mostly, when you look at the third quarter, we did have higher sales and marketing expenses. That was planned. There is a lot of preparation that goes into preparing for a holiday like this. Some of that is new placements at retail. Some of those higher expenses that you see in Q3, those did not shift because those are actually new kiosks at a major retailer with our product on it. These are new placements. So that's a very positive. We're happy to make that spend.

But when you look at fourth quarter, we've got a pretty significant amount of activities coming up in support of all the great things that are happening in the industry. So we did see a little bit of shift. But again, most of the growth that you see in that Q3 expenditure on the sales and marketing side is around our brand investments and also around that investment in the kiosks.

Sean McGowan

Okay. And with this talk about retailers taking product and the timing, what can you say about the status of channel inventory at this stage? I would suggest that it's pretty lean, but I don't want to put words in your mouth?

Cristopher Keirn

Yes. It can support the sell-through that we're seeing in the channel currently. I would say that when you look at the last couple of weeks of sell-through, again, through October, it's still falling kind of that seasonal curve. And as the sell-through has picked up over the last couple of weeks, we're seeing a reaction from retailers to go ahead and replenish at those levels, which is what we would expect.

So again, all of this is playing out as we thought it might, which is as that sell-through materializes, we're now seeing the orders reflect that from retail. So we stand ready to meet that demand and are looking forward to how that plays out over the next couple of months.

Sean McGowan

Okay. My last question is about margins. I know your margins are volume sensitive, so we're expecting to improve with the pickup in sales. But last year, I seem to recall you saying that the promotional environment was a little bit softer, not as intense as normal, and we should expect something normal this year. Can you -- do you think with the volume you're expecting in the fourth quarter, could gross margins be about what they were last year in the fourth quarter?

Cristopher Keirn

We believe so, yes. When you look at last year, we chose not to pursue a lot of deep discounts in last year's holiday. It was a little bit of a softer holiday. And so we chose to preserve a bit of margin there. When you look at this holiday, I think that we've been more promotional so far this year. You see that in some of the margin numbers, including the Q3 margin. There are more promotions in there than we did last year at this time.

When you look ahead to Q4, I think it's going to be more of a normal holiday promotional environment. And -- but that being said, for the full year gross margin, we expect to be within our target range of mid- to high 30s.

Operator

The next question comes from Jack Codera of Maxim Group.

Jack Codera

This is Jack Codera calling in for Jack Vander. If I could ask one more question. It seemed the sell-through traffic trends seem very positive. And you mentioned those 2 main segments being beneficiaries. I was wondering if PC accessories and some of your other segments, are they experiencing similar trends? Does it seem evident that it's just a good year in gaming or more GTA driven, which I assume would be more beneficial to console early because that's only releasing on console initially?

Cristopher Keirn

Sure. Jack, great question. Yes, when you look at the sell-through trends, we are seeing some nice movement across categories. For us, we talk obviously a lot about headsets and controllers. That's roughly 90% of our revenue, right? So when you look at our business, it is skewed even though those headsets are multi-platform, we see those 2 categories as the main contributors.

When you look at categories like mice, keyboards, simulation, those have also seen some growth year-over-year. And we've been able to pick up some share, particularly in the SIM category this year as well. So that's encouraging for us, but it just has less of an impact on our overall revenue than the other 2 categories.

Jack Codera

Okay. That's helpful. And one quick follow-up. I don't know if it's significant, but are you seeing any trends relative to geographies that may be worth tracking?

Cristopher Keirn

Sure. The U.S. has been pretty strong this year. You look at both headsets and controllers. Those are both up year-over-year year-to-date. And those are the 2 categories that we've seen accelerate more as we get into Q3 and into now the first part of Q4.

When you look at other geographies, I would say that I would characterize the U.K. and Europe as being somewhat softer, still improving, but I would say that those regions are trailing a bit behind the U.S. markets. And for us, Asia is a much smaller piece of our overall revenue. Again, it's kind of low to mid-single-digit contributor. So not much impact there from what we're seeing in the Asia markets.

Operator

This concludes the question-and-answer session. I would like to turn the conference back over to Mr. Cris Keirn for any closing remarks.

Cristopher Keirn

Thank you, everyone, for your interest in Turtle Beach, and have a great day.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.